It's a problem with third party Direct show codecs like K-lite. Same problem with the VistaCodecs pack. But it's easier to fix.
First of all, uninstall all third party codecpacks you may have on your machine and update to the newest version of
VistaCodecs.
It's the only one you'll need. Optionally you can keep Quicktime and
Real. (VLC is only local to it's own platform so that will have no
effect on Fable.)
Delete you Fable profile,
the entire folder. (my documents\my games\fable\saves\yourprofilename) Sorry, but your gonna have to start the game over.
Go to your windows start menu and find the "VistaCodecs\32bit Tools" folder.
Select the "Video decoder configuration" with the FFV icon.
Go
to DirectShow control and select the Don't use ffdshow in check box.
Then browse and select the Fable.exe program. This should disable the
codec while Fable is running.
Now you can restart the game and it should be able to save and open the profile.
It worked for me.
Other things you should/could do:
- Update to the latest DirectX
- Update your Graphics card driver
- Update your Audio driver
- Set your regional settings to ENG (UK).